Denmark to benefit from Iranian nuclear deal

The lower price of oil and a lifting of trade restrictions is expected to have positive effects on Danish companies and consumers.

Denmark to benefit from Iranian nuclear deal
Iranians were out celebrating the deal in the streets of Tehran. Photo: Atta Kenare/Scanpix

Danish businesses and consumers are both likely to benefit greatly from Tuesday's nuclear agreement between Iran and world powers once the sanctions against Iran are phased out.

Top Danish export companies such as medical firm Novo Nordisk will enjoy unimpeded access to the world’s 18th largest economy and a market of 78 million people, an estimated five million of whom are diabetics.

See also: The IAEA: The world's eyes and ears in Iran

Iran will also be able to sell far more of its oil on the world market. The price of crude oil had already fallen to $58 per barrel on Wednesday, a $10 drop over the past month. This should translate directly to lower prices at the petrol pumps for Danish drivers. 

The Confederation of Danish Industry (DI), an umbrella organization for over 10,000 Danish companies, is very optimistic about the potential export adventure this could lead to for many Danish businesses.

“The Iranian market is one that Denmark traditionally has had a solid foothold in,” Thomas Bostrup, the head of DI, told TV2.

Bostrup accompanied a DI delegation to Iran back in 2001 and said he was struck by the good reputation that Danish companies had in the country.

“I am sure that because the Iranians have a good memory, they will recall that Denmark delivered good and stable solutions. Denmark has a particularly strong position in the medicinal and food sectors, which I think is an area where Danish businesses will do well in the Iranian market,” he added.

See also: Denmark backs 'historic' Iran nuclear deal

The nuclear deal struck in Vienna puts strict limits on Iran's nuclear activities for at least a decade and calls for stringent UN oversight, with world powers hoping that this will make any dash to make an atomic bomb virtually impossible.

In return, painful international sanctions that have slashed the oil exports of OPEC's fifth-largest producer by a quarter and choked its economy will be lifted and billions of dollars in frozen assets unblocked.

The deal — which was built on a framework first hammered out in April — is US President Barack Obama's crowning foreign policy achievement six years after he told Iran's leaders that if they “unclench their fist, they will find an extended hand from us”.

It was hailed by Iran and the European Union as a new chapter of hope for the world but branded a “historic mistake” by the Islamic republic's arch foe Israel.

The Local Austria has much more on the Iran nuclear deal here.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.